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tv   [untitled]    June 12, 2013 8:30pm-9:01pm PDT

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housing trust fund. so next i thought i'd walk through the high-level how we've balanced. at the highest level i will say we balanced through a combination of revenues. some citywide changes month significantly related to the dmoopz the health care and pension costs. we certainly could revisit this section and some departmental changes. this table loolts highlights for you, we started with a $123 million and again in the second year. we were able to identify an
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additional $19 million and another 96 in the second each year. you can see the revenue improvement when it improves we feed our baseline like muni and the baseline. changes to reserve this is largely due we thought the health department was going to save us some money and some one time sources. this next slide highlights citywide you changes. we're funding our capital program that's the 92 percent level. in the second year wife identified some savings because it's not the full plan level.
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citywide work orders are costing us like workman's comp and other things. 32 the second year and it's almost by 10 million and finally some small savings and debt service. year two solution i called out separately because there's things that are different than what we previously assumed and their you treated differently in the first and second year. so the y pi make up part of the
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difference and a for the mayors budget is it includes 4 million to offset the loses. i think the health department can speak more on that >> when they do their budget presentation? >> okay. thanks. >> but as you can supervisor those services are a wide range of things including mental health and support for people who are home it's a variety of health and health related support. >> supervisor wiener. just to clarify it's not just ryan white it's ryan white cuts and directly health department staffing. it was actually $8 million in cuts and the mayor had last year
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back filled 4 million and made up the other 4 million but it gets worse as time goes on. so the mayor back filled the 8 million and there's another additional 4 million. we do have that breakdown we're happy to provide that. >> this is just again that first table walking you throw the citywide solutions and departmental. i'll be happy to answer any other questions you might have now or happy to answer he questions over two weeks >> just a question i was multi tasking. in the second year you have a
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savings of $1.18 million that's when we're looking at the overtime and the new recruits that are going to help lower that costs >> that is exactly right. so essentially when we add a second fire class in the first year of this budget because those recruits will be available to worko. we actually see savings in theo. budget. >> which resulted n in overall savings new. >> so the 1.8 million is money from having the class the first year. >> colleagues any further questions? >>
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an appropriation do we know exactly what the results is going to be. we have e time to ask if they
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can instead of that and they don't have to come back. how are they doing >> their come back to ask for a full release of that supplemental. >> okay. >> can i? >> supervisor. >> i want to add when the fire department does return to us with an additional request for a supplemental. i want to see numbers and data that supports the requests. specifically a clear understanding of the number of firefighters or based on where the overtime is actually coming from whether it's the baloney chiefs and as it relates to the amount of money we're spending
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on overtime and what that means. i want details especially, if we're being asked for an additional supplemental. the last time we were asked for a supplemental well i don't want to come back and say i've told you see. not only are we faced with a situation where there is money we may have to pay in order to deal with the department was out of money for the filling stations but the loss of one of our boats. i want to be comfortable when they come forward >> the supplemental from the fire department that's assumed to be coming forward. is that an provision within the
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fire department >> it's an appropriation within the fire department. you'll be reinviting the same item the need to move money into overtime salaries. there is no impact. >> supervisor avalos asked about the upcoming meeting on tuesday on the proposed health cuts. and >> mention the public health acts have been fully funded but there's a reduction coming up. that will probably be a topic for on the meeting but can you elaborate more. what types of cuts again would it $8.8 million in year two come
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to. thank you for that question. it's a little bit of a hard question. part of the plan as the affordable care act begins to be pledged take in that information and use that to structure the rfp proposals to the communicated. and so, you know, i don't think that the department has yet identified specific reductions within the system of care. i don't think they've said mental health and substance abuse they have not made torres those decisions? >>. it's the conversation with the community and as they get information about what kinds of services are covered under the affordable care act and what's not and the perspires created
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those things will inform how the rfp moves forward. supervisor reed still questions? >> any other questions at this time? >> at this point we'll have ben roman field come up. and we have other folks in the audience to answer questions on item 6 and 7. good afternoon ben rosen field. as your aware it allows the controller to make comments. we do this through the revenue letter and it's available on the controllers website. there's a lot of daily in this
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report on the assumptions and it walks through the reserve requirements through baseline requirements and we'll probably refer back to it but what i have today is a simple summary. general we find the mayors budget reasonable. they reflect projections of economic growth in san francisco although slowing somewhat. there's kind of two notable factors that we continue to monitor. the first, of course, is related to the state of budgets. it talks about available of money and there's more fluctuation with the state and local budget. just as a reminder the state of
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allocation is more. we'll be talking over the weeks about the current budget looks like. as the state moves closer to a budget on time this week there are positive and negative implications. not notoriously is related to federal health care reform and how much money the state will be pull back from counties associated with that. that's the most significant negative that will come from the state that budgeted that we'll be monitoring and reporting back to you. >> mr. rosen field.
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we'll know day-by-day. we have a reference of the claw act the budget proposal includes $300 million that's pulled back from county to state. our cut a $17 million. it's a fairly significant number but certainly lower than what we feared but we'll know more information duo all this week and weep update the committee. >> is it a moving target in the last week? >> supervisor kate howard mayor's office. the mayors budget did not include this new information and so we'll, needing to be
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adjusting to see how we jointly want to respond to that >> thank you. >> that's the big one. on the local side we're continuing to monitor our local year. our projection for next year is that we've grown 10 percent. it's an unexcepted recovery it's not sustainable and won't continue at that pays but the shape of our recovery looks like over the next 24 months will be the subject of constant monitoring. and we'll talk about some of those significant run upstairs in the presentation. so the highest level we do have
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local taxes growing. in the gin fund and then the fourteen, 15 budget apologizes typo grows by an additional $9 million in the budget that's before you. and again the local recovery could pull those down rather rapidly. the fund available from the current year that's allocated evenly over the two year period continues to improve. on net the budget grows the proposed stabilization over the next time period
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it tote budget grows by 7 percent vs. the current year budget while the general fund it growing more rapidly because of the tax. but in the next year we've got an 11 percent growth. just briefing highlighting the rates of growth. of course, there's a lot more daily in the report. i can see at the top of this page - well, starting at the bottom of the page local projection is going to be 8 percent. so very strong recovery
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projected and that's consistent with the recovery in the current year. property tax was flat for several years and recession so, now to grow to a healthy rate. the assessor will be closing the role and it's a reasonable he projection and pay role he tax growths and business growths an 11.6 percent includes estimate license fees that was a proposed by the prop. if you test out that policy adjustment that the voters adopted and the mayor proposed. the only other one is towards
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the end of the page we're at a historic growth in transfer tax and that's up 5 followed from the transfer taxes we received four years ago. we've gone up to two hundred and 50 million. the budget pulls that estimate down to 2 hundred and 25 million but this remains the most volatile projection. >> so this decrease is off the 2 hundred and 50 million? >> what do we propose for the last fiscal year. >> this is a projection. okay
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>> and i'll confirm that for you specify supervisor. >> this is graphically the property taxes we never saw a decline in any tax year it was a typical in the state. the blue line at the top of the package is our business collection taxes we dropped in 9 and 10 and been steadily gone up. hotel tax followed almost identical shape and steady recovery. anticipate transfer taxes you
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can see on the payment has been the most volatile to approximately 50 million and growing up to two hundred and 50 million projected. that's the one to watch as we work ahead. and again, we watch that tax on a month to month basis briefly on some of the uses of reserves. the budget does propose to draw the maximum remaining allowable rainy day reserve it's total is 8 million and 4 million in the second year of the budget. the budget does propose to draw $3 million from the one time
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account of the rainy day recess and use it for various one time purposes. and then our x reserve are both balances that can be drawn entirely over the two year period and that's for one time purposes. you have legislation in front of you that authorizes that use. there are deposits in the reserve. and consistent with the general receive does grow over this period of time to 1.5 percent of revenues in the second year and that reserve is opportunity in
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the budget before you. that growth and transfer tax is feeling deposits to the stabilizati stabilization reserve. when they receive historical deposits they will be available when the tax revenues decline. given our transfer of taxes over the two year time we expect 16 second yearhe first year and >> on our formulas for getting up to 2 percent for the general reserve it's a formula so we can't put any less than that amount we can put into more into the reserve; is that correct?
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>> the way it sits and works with the project it says that once the board and mayor adopts the financial policy they have to be approved by the mayor and the board. you're correct you could choose to allocate for money then or than the reserve the financial policy itself allows the board of supervisors by a two-thirds vote to suspect u suspend those policies. it's loopholes an option that's available to the mayor and board. and if the proposed budget it has a 12.5 percent as our reserve and then we're increasing that over the next
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two years >> until you get up to two percent. the last budget was up to one percent. and the report duces briefly to highlight here generally speaking the budget funds charter reserve level. the children's baseline is funded in excess of required levels in 3 years and that's been the historical practices. and all other financial baselines are funded at required you levels. we have other remittance of the charter that are binding but service policy guidance the police and minimum staffing level which is 19 hundred and 37
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full duty officers is not likely met in the first year of the budget but potentially he met in the second year. it's been many years since we've met that minimum requirement and then the treatment requirement is not met in either year of the proposed budget >> okay. thank you very much. colleagues any further questions at at this point in time? >> thank you. >> thank you much appreciated. we do have a budget report phenomenon mr. rose for items. mr. chairman we now have a quorum thoughtful board of supervisors >> thank you very much. >> mr. chairman.
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just in general to let the committee know we're going to have our first budget available to the committee tomorrow and it will be issued to the fill board, of course. i wanted to let the committee know that at the request of president chiu we're having an overview and that will be issued next week. with respect to the interim budget specifies as you know the annual budget process does require that the board of supervisors approve on interim provision basis and an timer salary basis on or before june 11th. the purposes is to provide
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expenditure authorization for the city and county during the time that the board of supervisors finance committee is reviewing the recommended budget over the next several weeks. we report on page 2 that new positions are subject to board of supervisors approval in the board approvals on expectation new positions can be filled july 1st, 2013, or otherwise they wouldn't be you filled until november of each fiscal year. the controllers controller has made provision of the fiscal year 2013 and fourteen and those changes are described on pages 2 and
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